📊 DRVN Key Takeaways
Is Driven Brands Holdings Inc. (DRVN) a Good Investment?
Driven Brands demonstrates stable operational profitability with a 10.1% operating margin and solid free cash flow generation of $67.4M, but faces headwinds from flat revenue growth and concerning liquidity metrics. The company's high leverage (2.44x debt-to-equity) and weak current ratio of 0.90x present financial stress that offsets the operational strength.
Driven Brands shows a fundamentally mixed profile: it remains profitable, generates positive operating cash flow, and converted that into positive free cash flow despite meaningful capital spending. However, flat revenue, a slight decline in net income, below-1.0x liquidity, and elevated leverage limit balance-sheet flexibility and reduce the quality of the earnings improvement.
Why Buy Driven Brands Holdings Inc. Stock? DRVN Key Strengths
- Solid operating margin of 10.1% showing operational efficiency in automotive services segment
- Positive free cash flow of $67.4M with 4.2% FCF margin providing cash generation capability
- Reasonable interest coverage ratio of 3.7x suggesting ability to service debt obligations
- ROE of 11.3% indicating reasonable returns on shareholder capital
- Positive profitability with 10.1% operating margin and 5.6% net margin
- Solid cash generation with $234.75M operating cash flow and positive free cash flow
- EPS growth materially outpaced net income decline, indicating improved per-share earnings performance
DRVN Stock Risks: Driven Brands Holdings Inc. Investment Risks
- Flat year-over-year revenue growth (0.0%) indicates stalled organic expansion and potential market saturation
- Weak liquidity position with current ratio of 0.90x and quick ratio of 0.80x below healthy thresholds
- High leverage with 2.44x debt-to-equity ratio and $1.9B long-term debt relative to $793.5M equity, limiting financial flexibility
- Low net margin of 5.6% with modest ROA of 2.2% limits profitability cushion
- Capital expenditure of $167.4M consumes 70% of operating cash flow, constraining discretionary cash
- Revenue was flat year over year, signaling limited top-line momentum
- Leverage is high with debt/equity of 2.44x and $1.94B in long-term debt
- Liquidity is tight with a 0.90x current ratio, 0.80x quick ratio, and only moderate 3.7x interest coverage
Key Metrics to Watch
- Revenue growth trajectory - flat performance is unsustainable and must show acceleration
- Free cash flow generation - must remain positive and grow to support debt reduction
- Debt-to-equity ratio - critical to monitor deleveraging progress given current 2.44x level
- Current ratio and liquidity position - needs improvement to above 1.0x for financial stability
- Operating margin consistency - maintain 10%+ to support fixed cost structure and debt service
- Organic revenue growth and margin expansion
- Debt reduction, interest coverage, and free cash flow conversion
Driven Brands Holdings Inc. (DRVN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 4.2% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
DRVN Profit Margin, ROE & Profitability Analysis
DRVN vs Automotive Sector: How Driven Brands Holdings Inc. Compares
How Driven Brands Holdings Inc. compares to Automotive sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Driven Brands Holdings Inc. Stock Overvalued? DRVN Valuation Analysis 2026
Based on fundamental analysis, Driven Brands Holdings Inc. has mixed fundamental signals relative to the Automotive sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Driven Brands Holdings Inc. Balance Sheet: DRVN Debt, Cash & Liquidity
DRVN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Driven Brands Holdings Inc.'s revenue has grown significantly by 59% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.25 reflects profitable operations.
DRVN Revenue Growth, EPS Growth & YoY Performance
DRVN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $502.3M | N/A | $-0.09 |
| Q2 2025 | $518.8M | N/A | $0.18 |
| Q1 2025 | $482.0M | N/A | $0.02 |
| Q3 2024 | $581.0M | -$14.9M | $-0.09 |
| Q2 2024 | $606.9M | $30.2M | $0.18 |
| Q1 2024 | $562.5M | $4.3M | $0.03 |
| Q3 2023 | $516.6M | $15.8M | $0.09 |
| Q2 2023 | $508.6M | -$22.6M | $-0.14 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Driven Brands Holdings Inc. Dividends, Buybacks & Capital Allocation
DRVN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Driven Brands Holdings Inc. (CIK: 0001804745)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DRVN
What is the AI rating for DRVN?
Driven Brands Holdings Inc. (DRVN) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are DRVN's key strengths?
Claude: Solid operating margin of 10.1% showing operational efficiency in automotive services segment. Positive free cash flow of $67.4M with 4.2% FCF margin providing cash generation capability. ChatGPT: Positive profitability with 10.1% operating margin and 5.6% net margin. Solid cash generation with $234.75M operating cash flow and positive free cash flow.
What are the risks of investing in DRVN?
Claude: Flat year-over-year revenue growth (0.0%) indicates stalled organic expansion and potential market saturation. Weak liquidity position with current ratio of 0.90x and quick ratio of 0.80x below healthy thresholds. ChatGPT: Revenue was flat year over year, signaling limited top-line momentum. Leverage is high with debt/equity of 2.44x and $1.94B in long-term debt.
What is DRVN's revenue and growth?
Driven Brands Holdings Inc. reported revenue of $1.6B.
Does DRVN pay dividends?
Driven Brands Holdings Inc. does not currently pay dividends.
Where can I find DRVN SEC filings?
Official SEC filings for Driven Brands Holdings Inc. (CIK: 0001804745) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DRVN's EPS?
Driven Brands Holdings Inc. has a diluted EPS of $0.69.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is DRVN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Driven Brands Holdings Inc. has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is DRVN stock overvalued or undervalued?
Valuation metrics for DRVN: ROE of 11.3% (sector avg: 12%), net margin of 5.6% (sector avg: 6%). Compare these metrics with sector averages to assess valuation.
Should I buy DRVN stock in 2026?
Our dual AI analysis gives Driven Brands Holdings Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is DRVN's free cash flow?
Driven Brands Holdings Inc.'s operating cash flow is $234.7M, with capital expenditures of $167.4M. FCF margin is 4.2%.
How does DRVN compare to other Automotive stocks?
Vs Automotive sector averages: Net margin 5.6% (avg: 6%), ROE 11.3% (avg: 12%), current ratio 0.90 (avg: 1.2).
Is Driven Brands Holdings Inc. carrying too much debt?
DRVN has a debt-to-equity ratio of 2.44x, which is above the Automotive sector average of 1x. Combined with a current ratio below 1, this warrants careful monitoring of the balance sheet.